Alton, Ia | fpr2006 - 3/30/2025 14:47
My barns weren’t grossing any more after they were 25 years old than they did when I built them. During that time Utilities went up. So the last years really netted less. I can’t really put the last 2 years in that statement because I get reimbursed for utilities and am not doing chores and loading anymore. Net is probably the same as ever. They do pay more for new built barns but the income cost ratio sucks.
In my opinion reasons independents declined was a lot more complicated than new barns. There are a lot of farmers that just don’t want to mess with pigs.
IMHO, and this is worth what you paid for it, not a dime more, is that the decline of independents is somewhat overstated. I know a lot of guys who own hogs. As many as do contract feeding. IF you define independents as owning hogs at market stage. You may or may not own the sows, grind your own feed, do the chores, etc. etc., It all depends how you define independent.
Pipestone is the #2 pig producer in the country, based on sows, according to Successful Farming's May 2024 issue. Those sows and sow units are owned by individual investors, some may also be grain producers, some just raise the pigs.
As to the decline you may have seen in your neighbors, a lot of it was driven by advances in animal health. All-in, all-out feeding showed big benefits in health and performance. 2500 head barns became the cookie cutter building. It takes pretty good stones to want to pony up $100,000 plus for the iso-weans and another $200,000 to make them fat, for ONE group. Lot's of people decided there were easier ways to make some cash.
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pork demand facts - damian mason
